Challenger pledges funds for Stella area

Ithaca Energy has completed an earn-in agreement signed last October with Challenger Mineral (North Sea).

Offshore staff

CALGARY, Alberta -- Ithaca Energy has completed an earn-in agreement signed last October with Challenger Mineral (North Sea). This was related to drilling of the Stella appraisal well in the UK central North Sea early this year.

Challenger has paid 27% of the gross Stella appraisal costs in exchange for an 18% interest in the Stella and Harrier discoveries, thereby carrying part of Ithaca's share of drilling costs.

Following the successful outcome of the appraisal well, Challenger also agrees to disproportionately fund a further Stella or Harrier development well.

The revised equities in the Stella and Harrier fields (blocks 29/10a and 30/6a (chalk layers and younger) are: Ithaca (50.33%), Dyas UK Ltd (31.67%) and CMI (18.00%).

09/23/2010

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